Back to the list

What Does The Future Hold For Bitcoin Price In A Moment Of Crypto Market Crash?

25 May 2022 14:20, UTC
Nick James

Since the last week crypto market continues to crash. Because of the increased volatility and the fear among the investors, the price of major cryptocurrencies and several others as well drops significantly. However, after plunging to an 18-month low over the weekend, Bitcoin has managed to recover. On Wednesday, the cryptocurrency is selling at under $30,000, which is a 56 percent reduction from its all-time high in November, while other top cryptocurrencies are also in decline.

Earlier today, the Bitcoin Fear & Greed Index fell to its lowest level in more than two years, registering "severe fear" in the single digits. Using data from cryptocurrency exchanges, social media postings, and market momentum, the confidence index tries to gauge how investors and traders feel about the current state of bitcoin. The last time it was this low was during the 2019 market slump, when some investors used the index to decide whether to buy, sell, or keep their stock.

At this rate, some experts think that the Bitcoin price will continue to go down, while some state that the current currency volatility of the market is typical of the crypto market. In order to avoid losing money in times of uncertainty many investors nowadays started to use AI-generated tools like Quantum Code, which allow crypto enthusiasts to set stop-loss orders. With the help of this order, AI can stop the trading process when a certain currency reaches the limit, which can be indicated manually.

The Crypto market has had some ups and downs in its history. The fact that the bitcoin price fluctuates isn't something new for those who are professional crypto investors. However, what the future holds for Bitcoin price and how the crypto market crash will affect the mentioned digital currency is still unknown. Nevertheless, there are some opinions about the way BTC and the overall crypto market are going to develop.

Crypto Sentiments

The future of cryptocurrencies will depend on how investors react. There has been fear and despair, with some comparing this crisis to a run on the banks, which we have already seen. Instead of fretting that their money has lost all of its value, clients in bank runs are more concerned that they will be unable to access it.

A better analogy would be a stock market collapse, in which investors fear that their investments would soon be worthless. So far, the response to this crypto-crash has shown that a significant portion of cryptocurrency investors share this sentiment. Despite the volatility of asset prices in the past, there is a common belief among investors that it will continue to rise. In this case, the investors are afraid to miss out. Investing is a “sure thing” for them when they see the value of the asset increasing. Investors are often encouraged to invest more after a promising start. With the help of social media and the dread of losing out on "inevitable" benefits, the investments keep on coming. Cryptocurrency investments were made by a large number of people who hoped to profit from the technology.

In addition, some people invest in cryptocurrencies because they think of them as a replacement for more conventional means of exchanging money. A rise in the value of a cryptocurrency is seen as evidence that cryptocurrency is becoming more powerful than conventional money. A significant drop in the value of cryptocurrency is not just a monetary loss, but an ideological one as well. That being said, investors who hold to this ideology are less inclined to sell when the going gets tough.

And this is the group that might give the industry some reason to be optimistic. Because bitcoin investors can be broken down into several groups with distinct objectives, we can better analyze their behavior. We may have already seen the worst of this financial crisis, and brighter days may be on the horizon for investors. However, it should be stated that nothing is stable and permanent in the crypto market.

Final Thought on Future BTC Price

Nowadays many investors ask whether or not it’s possible to see a BTC price increase. As long as the cryptocurrency market is volatile, there is no chance that it won't get bullish in the future. When will be this moment, it’s not clear. However, if we look at the past data of Bitcoin price changes and other major cryptos, we can find that prices can go up and down in a very short period.

During the past 10 years, BTC has seen many changes in terms of value. However, its price is almost the same as it was at the end of the 2020 year. Since then many factors affected the escalation of Bitcoin price, like the Covid-19 outbreak, which made many people start crypto trading to generate extra money and so forth. In 2022 this kind of “incentive” was the Russia-Ukraine war which made many investors buy digital assets. So no one knows what will be in the future. However, there’s rational hope that the crypto market will recover and still get bullish.